Question

The price of a stock is $29. A put option to sell that stock at $30 is currently selling for $3. You buy the stock and the put. Complete the following table and answer the questions.
a. What is the maximum possible profit on the position?
b. What is the maximum possible loss on the position?
c. What is the range of stock prices that generates a profit?
d. What advantage does this position offer?


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  • CreatedMarch 19, 2015
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